SentinelOne(S) - 2026 Q3 - Quarterly Results

Revenue Growth - Total revenue increased 23% year-over-year to $258.9 million, compared to $210.6 million[4] - Annualized recurring revenue (ARR) rose 23% year-over-year to $1,055.3 million as of October 31, 2025[4] - Customers with ARR of $100,000 or more grew 20% to 1,572 as of October 31, 2025[4] - Total revenue for the three months ended October 31, 2025, was $258.9 million, a 22.9% increase from $210.6 million in the same period of 2024[38] Profitability Metrics - GAAP gross margin was 74%, down from 75%, while non-GAAP gross margin was 79%, down from 80%[4] - GAAP operating margin improved to (28)%, compared to (42)%, and non-GAAP operating margin was 7%, compared to (5)%[4] - GAAP net loss margin was (23)%, improved from (37)%, while non-GAAP net income margin was 10%, compared to 0%[4] - Non-GAAP gross profit for the three months ended October 31, 2025, was $203,287,000, up from $167,589,000 in 2024, representing a 21.3% increase[41] - Non-GAAP operating income for the three months ended October 31, 2025, was $17,669,000, compared to a loss of $10,681,000 in the same period of 2024[42] - GAAP net loss for the three months ended October 31, 2025, was $60,291,000, compared to a loss of $78,364,000 in 2024, indicating a 23.1% improvement[42] - Non-GAAP net income for the three months ended October 31, 2025, was $24,791,000, compared to $75,000 in the same period of 2024[42] Cash Flow and Liquidity - Operating cash flow margin was 8%, compared to (3)%, and free cash flow margin was 6%, compared to (6)%[4] - Cash and cash equivalents at the end of the reporting period were $150.2 million, down from $186.6 million at the beginning of the period[36] - Net cash provided by operating activities for the nine months ended October 31, 2025, was $72.2 million, compared to $37.1 million for the same period in 2024[40] - GAAP net cash provided by operating activities for the three months ended October 31, 2025, was $21,014,000, compared to a loss of $7,174,000 in the same period of 2024[46] - Free cash flow for the three months ended October 31, 2025, was $15,904,000, while it was a negative $12,652,000 in the same period of 2024[46] Guidance and Future Outlook - Guidance for Q4 FY2026 revenue is $271 million, and for full FY2026 is $1,001 million[8] - Non-GAAP gross margin guidance for Q4 FY2026 is 77.5% and for full FY2026 is 78.5%[8] - Non-GAAP operating margin guidance for Q4 FY2026 is 5% and for full FY2026 is 3%[8] Balance Sheet Highlights - Total assets increased to $2.43 billion as of October 31, 2025, compared to $2.41 billion as of January 31, 2025[36] - Total liabilities rose to $882.0 million as of October 31, 2025, compared to $737.4 million as of January 31, 2025[36] Cost Structure - The company reported stock-based compensation expense of $75.3 million for the three months ended October 31, 2025, compared to $70.2 million in the same period of 2024[38] - GAAP gross profit for the three months ended October 31, 2025, was $191,062,000, compared to $157,388,000 in 2024, reflecting a 21.4% increase[41] - Total GAAP cost of revenue for the three months ended October 31, 2025, was $67,851,000, compared to $53,260,000 in 2024, marking a 27.4% increase[41] Key Operating Metrics - Annualized Recurring Revenue (ARR) is a key operating metric, reflecting the annualized revenue run rate from subscription and usage-based agreements, indicating the company's ability to acquire and retain customers[32] - The number of customers with ARR of $100,000 or more is a significant indicator of market penetration and strategic demand for the platform[33]